7 Server Trends You Should Keep an Eye on in 2025

7 Server Trends You Should Keep an Eye on in 2025

Here are seven server trends that you should keep an eye on in 2025

Adoption of ARM-Based Servers

ARM-based servers known for their energy efficiency and high performance are becoming more attractive for data centers and cloud providers. Initially popular in mobile devices, ARM architecture has made significant strides in server environments, offering an alternative to x86-based systems.

Mark Papermaster, Chief Technology Officer at AMD, explains, “ARM-based servers are quickly becoming a disruptive force in the server market. They offer improved performance-per-watt and are ideal for workloads that require high efficiency. By 2025, we expect to see widespread adoption across hyperscalers and enterprises alike.”

According to Omedia, the ARM-based server market is expected to grow at a compound annual growth rate (CAGR) of 20.3%, reaching $5.3 billion by 2025. This growth is driven by the increasing need for energy-efficient solutions and the flexibility of ARM architectures.

Edge Servers for Decentralized Data Processing

With the growth of IoT, 5G, and artificial intelligence, more businesses are turning to edge computing to process data closer to where it’s generated. Edge servers, which operate at the network edge, help reduce latency, improve data security and enhance real-time decision-making capabilities.

 

Sachin Gupta, Vice President of Product Management at Cisco, says, “The rise of edge computing is driving demand for edge servers that can handle localized data processing. As the need for real-time analytics grows, particularly in industries like healthcare and manufacturing, edge servers will become a critical part of the infrastructure.”

According to Gartner, 75% of enterprise data will be created and processed at the edge by 2025 up from just 10% in 2018. This shift highlights the growing importance of edge servers in managing decentralized data and supporting AI-driven applications.

Liquid Cooling for Servers

As server densities increase, cooling remains a significant challenge. Liquid cooling is emerging as a more efficient alternative to traditional air cooling, providing better temperature control and reducing energy consumption in data centers.

Robert Bunger, Director of Data Center Standards at Schneider Electric, states, “Liquid cooling technologies are becoming increasingly necessary as servers generate more heat. It not only reduces energy consumption but also improves the performance of high-density servers. By 2025, liquid cooling will be a standard practice in data centers handling intensive workloads.”

Research from MarketsandMarkets estimates that the global liquid cooling market for data centers will reach $2.5 billion by 2025, growing at a compound annual growth rate of 26%.This surge is driven by the increasing demand for high-performance computing (HPC) and the growing awareness of energy efficiency.

Serverless Architectures for Scalability

Serverless computing, or function-as-a-service (FaaS), allows developers to build and run applications without managing the underlying server infrastructure. This approach is gaining popularity for its scalability, cost-effectiveness and ease of use, making it an attractive option for dynamic workloads.

Werner Vogels, Chief Technology Officer of Amazon Web Services (AWS), said, “Serverless architectures are transforming how we build and deploy applications. By 2025, more companies will adopt serverless technologies to eliminate infrastructure management overhead and accelerate development cycles, particularly for microservices-based applications.”

According to Grand View research, the serverless computing market is projected to grow from $7.6 billion in 2020 to $21.1 billion by 2026, at a compound annual growth rate of 22.7%. This growth underscores the increasing adoption of serverless technologies in cloud-native environments.

AI-Enhanced Server Management

Artificial intelligence is playing a growing role in server management, helping optimize performance, reduce downtime, and predict failures before they occur. AI-driven tools can automate routine maintenance tasks, monitor server health in real-time and improve overall efficiency.

Paul Speciale, Chief Product Officer at Scality, explains, “AI-enhanced server management is the next frontier for data center operations. By leveraging machine learning algorithms, organizations can predict hardware failures, optimize resource allocation and reduce operational costs. By 2025, AI-driven automation will become integral to server maintenance.”

A report from McKinsey estimates that AI-enhanced server management will reduce operational costs by 30% and data center downtime by 40% by 2025. These improvements reflect the potential of AI to transform how data centers operate and maintain their infrastructure.

Rise of Composable Infrastructure

Composable infrastructure allows businesses to dynamically allocate compute, storage